News

Michael Dell seeks control of his company in leveraged buyout, according to report

Reuters

Posted:
01/30/2013 11:37:55 AM PST

Updated:
01/30/2013 11:37:55 AM PST

NEW YORK -- Dell's founder and CEO may pay as much as $1 billion out of his personal fortune to assume control of the world's No. 3 PC maker in a leveraged buyout, Bloomberg News reported on Wednesday citing people familiar with the matter.

Michael Dell may contribute equity financing of $500 million to $1 billion in addition to his approximately 16 percent stake in Dell, worth about $3.6 billion, to push his ownership above 50 percent and have majority control, Bloomberg said.

Details of the equity financing were still being finalized while making sure Dell has explored all possible alternative options, including a sale to other buyers, Bloomberg said.

Representatives of Dell, Silver Lake and Microsoft did not immediately respond to requests for a comment.

Dell has formed a special committee of its independent directors and has hired Evercore Partners Inc to assess whether the company is getting the best deal for shareholders and not one that is just in the best interest of Michael Dell, people familiar with the matter have previously told Reuters.